Academic journal article Journal of Financial Management & Analysis

Analysis of Private Poultry Productive Cost in Oyo State of Nigeria: Survey Findings

Academic journal article Journal of Financial Management & Analysis

Analysis of Private Poultry Productive Cost in Oyo State of Nigeria: Survey Findings

Article excerpt

Introduction

Considering the technical efficiences, Farm C (small scale) has been the most technically efficient out of the three farms since it has been working/ operating at a level closer to the maximum capacity attainable, unlike the two large farms that have a lot of equipment, cages, feed mill through integration but are yet under-utilized. Household income is directly related to the consumption of poultry meat and eggs in Nigeria, since poultry products are normal food, the income elasticity of demand for poultry products in Nigeria is relatively elastic, thus with increasing income, demand will certainly rise and vice versa (Oni1).

Household income in Nigeria has increased substantially in the last few years, evidently from the minimum wage given rise to the increasingly demand for more nourishable protein diet like poultry products by many household, thus promoting chicken and table eggs from their occasional diet category to normal food. Eggs nowadays is a major breakfast food for many household (Cole2). He stressed further that, the increased demand has triggered the increase in prices of poultry products and partly due to the ban in importation of processed chicken. Though, this ban have encouraged increased Local poultry production, but the consequent increased cost of production that emanated from the ban in maize importation led to the increasing price of these products, making them out of the reach of many household. Adeyokunnu and Ingersent1, asserted that high cost of table eggs in Nigeria was partly attributed to high cost of feeding the birds, irregular . supply of the feeds, irregular replacement of stock, and small scale of production.

Akinwumi and Ikpi found out that feed accounts for about 65 per cent of the total cost of production, day old chicks, takes 18 per cent transportation 2%, miscellaneous expenses (mostly utilities) constitutes 1.5 per cent. They also found out that about 60 per cent of all the day old chicks used in the country were imported. On the feed situation in Nigeria, they found out that there was about 60 percent capacity utilization of feed mills in Nigeria due to delays in grain importation and problems of feed utilization.

Bamidele5, revealed that the cost of production vary across the regions due to variations in factor prices, and that major component of costs was feed which had the highest percentage of about 73 per cent of the total cost of production. He also revealed that in the index of cost variability computed, egg production using battery caged had the highest variance while that of broiler was low. Nwoko6, observed that over 90 per cent of all exotic poultry produced in the country on commercial basis is kept by private producers. He observed further that, poultry keepers in Nigeria are mainly interested in egg production, because consumers know little or difference between broiler and culled birds, since they prefer old strong chicken meat to those obtained from broilers for sale while they concentrate on layers which are culled as demanded.

Cole, reported that, the quantity of eggs and poultry meat consumed by each household is determined by a number of socio - economic characteristics, which includes; size of households, level of household income, prices of eggs and poultry meat, level of education or awareness, availability of close substitutes and festivities.

Specific Objectives of the Study are to:

* determine the cost of production amongst different sizes of poultry entrepreneur in Oyo State;

* determine the lucrativeness of poultry production faced with the present situation in the country;

* compare the present level of operation of the farms selected and determine the factors responsible for the existing performance;

* determine the efficiency of each farm under consideration.

Methodology Used

The three farms selected were located within Oyo State. The two large-scale farms are Vabo agricultural industry in Ibadan, and Amo Sandas in A weOyo, while the small scale farm is Ajagbe poultry farm in Ogbomoso. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.